Sales of $3 million-plus homes up 86 per cent in Toronto and 41 per cent in Vancouver

Vancouver luxury market experiences slowdown due to foreign buyer tax; GTA keeps up record pace

TORONTO and KELOWNA, BC, Nov. 3, 2016 /CNW/ - Sales of homes priced over $1 million were up year-over-year in Toronto, Vancouver, Calgary, Victoria and Oakville in the first nine months of 2016. In the Greater Toronto Area and Vancouver, Canada's largest high-end housing markets, sales of $3 million-plus homes saw significant increases, of 86 per cent in the GTA and 41 per cent in Vancouver.

While Vancouver sales of $1 million properties were up by three per cent overall, single-family home sales in that range declined by seven per cent year-over-year. One factor contributing to this decrease is the foreign buyer tax implemented by the provincial government in August, which has resulted in slowing demand for single-family detached homes from off-shore buyers.  

"Vancouver's high-end market has experienced a slowdown in the past several months after a period of record-breaking sales," said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "Part of this may be due to the tax on foreign buyers that was introduced in August, though there may be other factors at play as well, such as higher inventory lessening buyers' sense of urgency."  

The Greater Toronto Area's market has experienced continued strong demand for luxury properties, with sales of homes over $3 million rising by 86 per cent year-over-year. This is largely attributable to overall price appreciation in the market, driven by low inventory and high demand for single-family homes, which has resulted in more homes meeting the higher dollar threshold. Additionally, significant price appreciation throughout the housing market has allowed move-up buyers to build up enough equity in first or second homes to purchase a high-end home.

"Demand for luxury homes remains very strong in the Greater Toronto Area, driven mainly by local move-up buyers, though foreign buyers continue to play a significant role as well," said Pamela Alexander, CEO and Regional Owner, North America, RE/MAX INTEGRA. "While there has been speculation that Toronto would see an increase in off-shore buyers as a result of the recently implemented foreign-buyer tax in British Columbia, we have not seen this effect to date."

High demand in the GTA and Vancouver has resulted in a spillover effect in neighbouring markets, as buyers look further out for more selection and value. Victoria saw sales of properties over $1 million increase 82 per cent over the same period in 2015, driven primarily by downsizers relocating from Vancouver for retirement. In Oakville, an affluent suburb to the west of the GTA, sales of $1 million-plus homes increased by 111 per cent year-over-year, driven by price appreciation throughout the market as well as increased interest from foreign buyers.

Calgary's luxury market has stabilized over the first nine months of 2016, and after a period of declines, sales of $1 million-plus homes were up 13 per cent year-over-year. There have been fewer luxury homes coming on the market, as sellers hold back until values rebound. Meanwhile, buyers have increasingly looked to take advantage of lower prices for luxury properties. If these trends continue, Calgary's luxury market is expected to remain stable with properties holding their value for the remainder of the year and into 2017.

Sales of luxury condominiums in Canada's two largest luxury markets have experienced significant growth in 2016, driven by increasing demand from downsizers, as well as limited inventory of single-family homes. Condos sold for over $2 million rose by 42 per cent in Toronto, while Vancouver saw sales grow by 60 per cent compared to the same period in 2015.

Luxury market trends seen in Canada's major markets during the first nine months of the year are expected to continue through the end of 2016 based on interviews with RE/MAX brokers and associates. For more information, please visit the 2016 RE/MAX Spotlight on Luxury.


Number of properties sold year-over-year

(January 1 to September 30)

Highest sold

(January 1 to September 30)


1M+

2M+

3M+




2016

2015

YOY

2016

2015

YOY

2016

2015

YOY

2016

2015

Greater Toronto Area

15,022

8,879

69%

2,388

1,343

78%

662

356

86%



Freehold

14,534

8,552

70%

2,320

1,295

79%

642

335

92%

$26,800,000

$15,000,000

Condominium

488

327

49%

68

48

42%

20

21

-5%

$6,280,000

$5,800,000

Oakville

1,195

567

111%

180

80

125%

45

16

n/a



Freehold

1,169

549

113%

173

76

128%

45

16

n/a

$8,300,000

$10,500,000

Condominium

26

18

n/a*

7

4

n/a*

0

0

n/a

$2,850,000

$26,000,000

Vancouver

3,470

3,357

3%

1,708

1,465

17%

1,034

731

41%



Freehold

2,608

2,805

-7%

1518

1346

13%

946

676

40%

$31,100,000

$23,888,000

Condominium

862

552

56%

190

119

60%

88

55

60%

$16,600,000

$7,750,000

Calgary

382

338

13%

40

25

60%

9

9

n/a*



Freehold

371

323

15%

37

24

54%

7

6

n/a*

$4,775,000

$5,200,000

Condominium

11

15

n/a*

3

1

n/a*

2

3

n/a*

$8,389,500

$3,769,500

Victoria

615

337

82%

81

47

72%

15

14

n/a*



Freehold

528

286

85%

72

42

71%

15

11

n/a*

$11,000,000

$7,288,000

Condominium

87

51

71%

9

5

n/a*

0

3

n/a*

$25,000,000

$5,300,000

Source: Historical values are sourced from CREA or local board statistics

*Sample size not large enough for year-over-year comparison

About the RE/MAX network

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence.

Over 100,000 agents provide RE/MAX a global reach of over 100 countries and territories.

RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX).

With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $150 million for Children's Miracle Network Hospitals® and other charities.

For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.ca.

About RE/MAX INTEGRA and RE/MAX INTEGRA, Ontario-Atlantic Canada      

RE/MAX INTEGRA, founded in 1980, is a privately held company by Canadian entrepreneurs. With regional headquarters in Toronto, Boston, Minneapolis, Indianapolis, Zug, and Vienna, RE/MAX INTEGRA represents nearly a third of all RE/MAX Sales Associates worldwide. The company was founded on the premise of providing outstanding service and support both at the regional level and to the end consumer.

The Ontario-Atlantic Canada region has surpassed 10,000 quality Associates; The US regions — New England and the Midwest (including the following states: Minnesota, Wisconsin and Indiana) – account for more than 6,500 Associates with over 2,600 and 3,800 Associates respectively; and the European region leads with more than 16,000 Associates. For more information about RE/MAX INTEGRA, visit www.remaxintegra.com.

Forward-Looking Statements 
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "intend," "expect," "estimate," "plan," "outlook," "project" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding the future performance of the housing market, the Company's financial and operational outlook, the Company's belief that business fundamentals remain strong, as well as other statements regarding the Company's strategic and operational plans. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Such risks and uncertainties include, without limitation, (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain agents, (5) changes in laws and regulations that may affect the Company's business or the real estate market, (6) failure to maintain, protect and enhance the RE/MAX brand (7) fluctuations in foreign currency exchange rates, as well as those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in the most recent Form 10-K filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov.  Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. 

SOURCE RE/MAX Ontario-Atlantic Canada

For further information: To coordinate interviews, please contact: National, Rachael Factor, O. 416-645-3660; C. 416-460-5744; E: rachael.factor@fleishman.ca; Western Canada, Wade Paterson, O. 250-860-3628; Ontario and Atlantic Canada, Melissa Clemance, O. 905-542-2400


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